By Bonnie Burns, Policy and Training Specialist
Premium Payments: If you selected Option 1 in the second settlement to give up your CalPERS long-term policy and get a refund of 80% of the premiums paid, you can stop paying premiums as of the final settlement date that was September 28, 2023. If your premium was automatically deducted from your pension, those deductions should stop automatically. Any premiums deducted in error or paid in error after that date will be refunded in full at 100% by CalPERS separate from the settlement payments.
Settlement Payment: Payments will be mailed out by check in January 2024. This is because CalPERS had 75 days after the final settlement date to liquefy assets and fund the settlement. The settlement Administrator had 30 days after that to distribute the funds making the deadline
for sending out checks January 11, 2024.
On Claim or Applied To Go On Claim After December 2023: A small number of class members may not receive a payment in January if they had gone on claim or applied to go on claim since the end of December due to a lag in data from CalPERS. In the event that a class member went on claim or applied to go on claim after December, they will be placed in Category I that will allow them the choice of reversing their previous option and keeping their policy.
Late Election Form: This form will be mailed out on November 2, 2023 to those class members. The Late Election form will allow a class member to keep their CalPERs long-term policy now that they are on claim, or stick with their original decision to surrender their policy for a refund of
premium. Those members will have 30 days to return that form. Class members who do not return their Late Election forms within 30 days will, by default. keep their policy with the $1,000 settlement payment even if their original choice was to take the 80% refund. That payment will be delayed until early March of 2024.
Waiver of Premium: A class member who keeps their policy and goes on claim during this short window should remember that their premium will be waived after a specific period of time stated in their policy.
If there is additional information in regard to the settlement we will post it as we receive it.
- CalPERS Update #14: Court Could File Final Order by Late September
- CalPERS Update #13: More Details About the Second CalPERS Settlement
- CalPERS Update #12: Second Settlement Announced – Your Options & Actions to Take
- CalPERS Update #11: CalPERS to Offer 2nd Settlement in Class Action Lawsuit
- CalPERS Update #10: Next Steps & Who Oversees CalPERS Anyway?
- CalPERS Update #9: Did You Receive a Letter About Past Due Premiums?
- CalPERS Update #8 – Background & Next Steps
- CalPERS Update #7: Investigation into CalPERS Long-Term Care Insurance Program
- CalPERS Update #6: CalPERS Opts Out of Settlement
- CalPERS Update #5: Settlement Decision Deadline is January 28, 2022
- CalPERS Update #4: Replacement Coverage Deadline Extended
- CalPERS Update #3 (Oct 2021)
- CalPERS Update #2 on Settlement & Premium Increase
- CalPERS Update: Premium Increases & Class Action Settlement Are Not Related